Virtual study applied to assess the technical and economic feasibility of the dairy project in the Faculty of Agriculture\ University of Anbar

Abstract

Economic valuation of the investment project gives the investor the freedom to choose between opportunities, according to the principles and criteria to ensure it returns sufficient economic to recover the basic costs and sustainable profitability target of the investment process. The aim of this study was to determine technical and economic feasibility of the project dairy proposed in the Faculty of Agriculture, University of Anbar, and the card (3) tons of raw milk per day. To encourage farmers in the province and its environs, to the attention of raising dairy cattle, through the creation of the market to buy milk and converted to other derivatives to meet local market needs cheese quality and pasteurized milk and cream and exponential cream, and other dairy 142 products, because of their nutritional value can not be on the individual indispensable in his food daily. The study identified basic requirements and costs for both types of investment, operational, and labor for the project. In light of this economic evaluation was conducted which showed that the net annual income amounted to 311.04 million dinars a year, and gross value added is equal to 351.64 and 338.04 net value added. And the ratio of income to total investment costs of up to 58%. The duration of the project to recover investment costs are almost 20 months. And concluded that the proposed project remains profitable and achieve the rate of return acceptable makes an investment decision on its implementation is not accept the frequency even if the prices of production input key, which represents 70% of the total investment cost of the project by 10% with the assumed constancy of the final prices for the sales of production. Therefore, the study recommended that the decision is not funded by any real risk in light of profit achieved.